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Cleaning up India’s energy mix

2015 marked the first time that the average Indian was exposed to more air pollution from fine particulate matter than the average Chinese, reports Greenpeace. In response, India has introduced new taxes aimed at cutting pollution and reducing emissions. The country’s finance minister announced this week a tax of up to 4% on new passenger vehicles. It’s estimated that almost 40% of Dehli’s air pollution comes from vehicle emissions alone.

India is also taking aim at cleaning up its energy mix, both for local pollution abatement gains and for global GHG mitigation. When announcing the car tax, the finance ministry also announced a doubling of its tax on coal, which comprises 70% percent of India’s energy mix. With an eye toward low carbon energy sources, the government plans to allocate $430 million for nuclear power development.

It also continues to emphasize solar energy development. The BRICS development bank, along with the World Bank and the Asian Development Bank, recently announced that they will each provide $500 million in financing for rooftop solar in India. These loans will be used to provide a 30% subsidy to public institutions that set up rooftop solar power systems. India aims to have 100 GW of solar power capacity operational by April 2022, with 40% of it coming from rooftop solar. Currently rooftop solar contributes only 10% of the total 5 GW solar power capacity. To spur development, the Indian Cabinet recently approved a rooftop solar subsidy of $770 million by 2022 for public institutions, to complement the international development bank loan pledges.